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Spring Street Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for
Spring Street Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: Engine parts $1,183,700 Shop direct labor 864,000 Shop and repair equipment deprciation 66,800 Shop supervisor salaries 185,600 Shop property tax 33,700 Shop supplies 25,900 23,700 101,800 13,000 $2,498,200 Advertising expense Administrative office salaries Administrative office depreciation expense Total costs and expenses The average shop direct labor rate is $18 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent. per direct labor hour
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